Concerns over business interruption, travel insurance and life insurance have characterized the discussion over the ongoing Ebola crisis and its effects on the insurance industry. The lasting influence of Ebola, however, will likely be on workers’ compensation carriers, according to a new study from the Insurance Information Institute.
Dr. Steven Weisbart, chief economist for the III, speculated that the impact on healthcare workers will cause the most significant changes to occur in the workers’ comp segment, though other effects on general liability, medical malpractice and directors & officers liability are possible.
D&O, for example, may experience claims “asserting that the policyowner was negligent in failing to prevent transmission of the virus,” Weisbart said.
However, considering the insurance landscape of the most heavily hit countries, impact may be minimal.
“It is unlikely that many workers in the main affected African countries have workers compensation-type coverages,” Weisbart said.
In fact, the level of premiums per capita for all coverages—excluding life insurance—in these countries is “so low as to not be listed” in the latest
Swiss Re report.
Stateside, Weisbart sees a similar lack of market disturbance. While workers’ compensation is near ubiquitous in the US, healthcare workers generally take proper precautions to avoid Ebola infection, meaning claims will be low.
As for any lasting effects?
“Reinsurance will help mitigate the financial effect of a surge in claims, which are likely to be very costly in the vent of actual work-related infections,” he concluded.
As of early this month, the Ebola virus has infected at least 8,399 people and killed 4,035. That includes 4,762 confirmed cases; 2,196 probable cases; and 1,652 suspected cases.
